Cricket Australia has recalled its security team without a resolution in sight and the states are already making plans to include members of the Test squad in next week's domestic one-day tournament as the prospect of the team touring Bangladesh diminish. 
While the local government has offered a raised level of security following warnings of attacks on Australian interests, developments in the past 48 hours make it unlikely the tour will continue. On Monday night, an Italian aid worker was gunned down in Dhaka by three men on a motorcycle and died of his wounds.
Islamic State militants later claimed responsibility for the murder and warned that "citizens of the crusader coalition" would not be safe in Muslim nations.
Australian soccer is also caught up in the issue. The Socceroos have a World Cup qualifier against Bangladesh in Dhaka on   November 17.
The Socceroos beat Bangladesh 5-0 in Perth earlier this month. The cricket team was due to fly out on Monday for a two-Test series, but its scheduled departure was delayed after the Department of Foreign Affairs and Trade contacted Cricket Australia to let it know that it would be warning Australians to reconsider travelling to the country.
"There is reliable information to suggest that militants may be planning to target Australian interests in Bangladesh," the department warned.
"Australian officials in Bangladesh have been advised to limit their movements in public places, including bars, hotels and events and locations frequented by foreigners." Specific warnings were made about threats in Dhaka where the second Test was to be played and the Italian assassinated.
The British government has followed suit and warned officials "to limit attendance at events where Westerners may gather. You should be particularly vigilant at this time".
The US and Canadian governments have since issued similar warnings. Cricket Australia sent a security delegation to Bangladesh on the weekend but it was on its way back yesterday with no resolution in sight.
"Following yesterday's meetings, our head of security (Sean Carroll), team manager (Gavin Dovey) and team security manager (Frank Dimasi) are on their way home from Bangladesh for further meetings with the Department of Foreign Affairs and to brief our board, management and players on the situation," a Cricket Australia spokesman said yesterday.
Dovey and Dimasi would normally be expected to stay and organise ahead of the players' arrival and their recall has reportedly surprised the BCB.
It is being read as a clear signal Australia will not proceed with the tour. Bangladesh Cricket Board president Nazmul Hasan said security arrangements for the Australians would be similar to those in place for the World T20 tournament last year.
"We've told them that the cricketers will get VIP security," Hasan told reporters following meetings with CA's delegation.
"We also told them, by way of example, about the measures taken during the T20 World Cup in Bangladesh." The Matador domestic one-day competition is due to start in Sydney on Monday and will also be affected by the change of plans.
States had announced 14-man squads and a Cricket Australia XI development squad was also due to take part in the tournament.The 15 players chosen to tour Bangladesh will now be looking to squeeze back into their various state teams which will force a number of players out.